Every year the Ministry of Finance body CBDT announces the ITR forms for the relevant Assessment Year (presently AY 2015-16). For the same, on April 15, 2015, the CBDT has announced some lengthy & complicated ITR Forms (requiring lots of information including foreign travel details, all bank account details etc). Facing immediate criticism & condemnation from all the corners, the honorable finance minister (who was attending some meetings abroad) has spoken to take these Forms back and to come back with new simplified Forms.
Now, Vide Press Release Dated May 31, 2015, Ministry of Finance has announced that as the new ITR Forms are still under preparation, hence, Due Date of ITR Filing is proposed to be extended upto August 31, 2015. Further, for the simplification of ITR Forms, the MoF has also given certain clarifications about the new ITR Forms, which are as under:
ITR 1 and ITR 4S
For Individuals Individuals having exempt income without any ceiling (other than agricultural income exceeding Rs. 5,000) can now file Form ITR 1 (Sahaj). Similar simplification is also proposed for individuals/HUF in respect of Form ITR 4S (Sugam).
New ITR 2A Form Proposed
At present individuals/HUFs having income from more than one house property and capital gains are required to file Form ITR-2. It is, however, noticed that majority of individuals/HUFs who file Form ITR-2 do not have capital gains. With a view to provide for a simplified form for these individuals/HUFs, a new Form ITR 2A is proposed which can be filed by an individual or HUF who does not have capital gains, income from business/profession or foreign asset/foreign income.
No Foreign Travel & Expense Detail Required
In lieu of foreign travel details, it is now proposed that only Passport Number, if available, would be required to be given in Forms ITR-2 and ITR-2A. Details of foreign trips or expenditure thereon are not required to be furnished.
All Bank Accounts Details – Information Requirement Limited
As regards bank account details in all these forms, only the IFS code, account number of all the current/savings account which are held at any time during the previous year will be required to be filled-up. The balance in accounts will not be required to be furnished. Details of dormant accounts which are not operational during the last three years are not required to be furnished.
Migrated NRIs, Expatriates - Foreign Assets Details Not Required
An individual who is not an Indian citizen and is in India on a business, employment or student visa (expatriate), would not mandatorily be required to report the foreign assets acquired by him during the previous years in which he was non-resident if no income is derived from such assets during the relevant previous year.
ITR Form Information & Size Shortened
As a measure of simplification, it has been endeavoured to ensure that in Form ITR 2 and the new Form ITR 2A, the main form will not contain more than 3 pages, and other information will be captured in the Schedules which will be required to be filled only if applicable.
Due Date Extended – From July 31 to August 31 of 2015
As the software for these forms is under preparation, they are likely to be available for e-filing by 3rd week of June 2015. Accordingly, the time limit for filing these returns is also proposed to be extended up to 31st August, 2015. A separate notification will be issued in this regard.
This article is useful and relevant for all ITR filers in India i.e NRIs, Expatriates and All Other ITR Filers. It also clarifies various general doubts & frequently asked questions of ITR Filers, such as:
- Due Date of ITR for FY 2014-15 (i.e. AY 2015-16)?
- Information Required in ITR Form?
- What kind of ITR forms shall be there for FY 2014-15 (i.e. AY 2015-16)?
- Need to know about ITR Forms for filing of an ITR in India by NRI/Expats/Others?
- Income Tax Return, Due Date, ITR Contents, Information Required in ITR Forms, Complication of ITR, Why ITR etc?
- Which ITR Form is applicable to my case?
- Points for consideration in relation to NRIs/Expats ITR?
- Filing of ITR in India - things/tips/points, which NRI/Expat should keep in mind?
- Which ITR Form is applicable to my case??
- I am an NRI/Expatriate. Should I file an ITR in India? Should I file the ITR before Due Date?